ADO Properties successfully places 400 million Euro corporate bond with a coupon of 1.5% and receives Baa2 rating from Moody's

- Unsecured, fixed-rate bond with a nominal value of 400 million Euro

- Moody's assigns Baa2 rating to ADO Properties; stable outlook

- Proceeds used for future acquisitions and selective refinancing of existing debt

- Refinancing of upcoming maturities to results in interest savings

- Remaining cash balance of more than 300 million Euro and strong acquisition pipeline

ADO Properties S.A. announces the successful placement of an inaugural unsecured, fixed-rate corporate bond with a total nominal amount of EUR 400 million. The bond maturing on 26 July 2024 will bear an annual coupon of 1.5%.

The bond was offered to institutional investors after several days of pan-European roadshow and met with significant investor demand, resulting in a 2.25 times oversubscribed order book.

The net proceeds of the bond will mainly be used to fund future acquisitions, refinance selected existing debt, as well as for general corporate purposes.

On 17 July, Moody's Investors Service assigned a first-time issuer rating of Baa2 to ADO Properties S.A. The rating reflects ADO Properties' focus on the stable rental housing market in Germany, its moderate leverage and its strong fixed charge coverage. In line with the corporate rating, Moody's Investors Service Limited has assigned a rating of Baa2 for the bond.

With this transaction the average maturity of ADO Properties total debt has increased from around 5 to more than 5.5 years and the average interest rate decreased by around 10 basis points. From the net proceeds, approximately 80 million Euro is planned to be used to repay existing indebtedness with maturities up to 2019. The average interest rate of the debt that is expected to be repaid is 2.7%, the fair market value of the assets underlying this debt is around 260 million Euro as of 30 June 2017. The planned refinancing will significantly improve ADO Properties' funding structure, create further unencumbered assets and lead to significant interest and amortization savings.

"Following our successful equity raising we have undertaken the next important step to diversify our funding sources and make them more flexible. The successful bond placement together with our solid investment grade rating by Moody's is further expanding our access to capital to support our future growth strategy" said Florian Goldgruber, CFO of ADO Properties.

Barclays, Morgan Stanley and SG CIB are acting as Joint Bookrunners on the bond placement. Morgan Stanley is acting as sole ratings advisor and adviser on the overall transaction.

The remaining bond proceeds will provide ADO Properties with the ability to fund its strong acquisition pipeline and add further properties of more than 300 million Euro to its portfolio.

"We see a continuous dealflow of new opportunities in line with our past experience and are confident to deploy this additional capital over the next 6 to 12 months into new accretive acquisitions" said Rabin Savion, CEO of ADO Properties.

About ADO Properties

ADO Properties is a pure-play, Berlin-based residential real estate company with more than 19,000 units. The Company has a fully integrated, scalable in-house platform with its own property management. Along with the responsibility for the condition of its apartments and buildings, ADO Properties also assumes responsibility towards people, employees, and neighborhoods. ADO Properties' portfolio is focused on central locations in Berlin and attractive suburban districts.